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Technology Stocks : Intel Corporation (INTC)

INTC 37.51

-0.8%

3:59 PM EST

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To: TTOSBT who wrote (54540)	4/26/1998 9:08:00 PM
From: gnuman	Read Replies (1) of 186894

TTOSBT, re: <So then the only thing that makes P/E values are analysts projections?> Not current P/E's. Forward looking P/E's are derived from the consensus of analysts earnings estimates. These are usually different from current P/E's. The current P/E of Intel is about 19, (from Mary's "Barons" table). But if Intel's 1998 earnings do come in at consensus of $3.25, it's trading at an anticipated P/E of 26. In other words, to maintain the current share price in January, the P/E must increase to 26. Since this would put it at the high end of Intel's historical P/E's, it probably explains why the market is pricing the stock where it is. The analysts pretty much determine the consensus estimate, the market determines the share price. And let's hope the Fed leaves interest rates alone, another way to kill P/E's. But you know all this anyway, I bet.

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